Answered: If a company has a discontinued…

If a company has a discontinued operation gain of $30000 and a 32% tax rate, what is the effect on net income? 1Increase of S20400. 2 Increase of $30000. 3lncrease of $9600. 4No effect.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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If a company has a discontinued operation gain of $30000 and a 32% tax rate, what is the effect on net
income?
1Increase of S20400.
2
Increase of $30000.
3lncrease of $9600.
4No effect.

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